Advertising Campaign - Case Study Example

Advertising Campaign Introduction An advertising campaign comprise of a cycle of advertisement messages that segment a particular idea and theme. This impression and theme compose an integrated marketing communication (IMC). It is worth noting that advertising campaigns appear in diverse media across a precise time frame. The principal part of creating an advertising campaign is shaping a campaign theme. This is because the campaign theme is believed to set the tone for the specific advertisements and additional kinds of marketing communications that ought to be used. As a result, the campaign theme is the essential message that will exist communicated in the advertising activities. The campaign themes are frequently developed with the purpose of being used for a considerable period. However, several of them are short lived because factors such as being unsuccessful or market circumstances and/or rivalry in the marketplace and marketing combination. This essay, consequentially, will focus on Nike Inc. Company advertising strategy (Egendorf, 2006). Information Relating To the Firm and Industry or Market Nike, Inc. was founded by Bill Bowerman and Phil Knight, who met in the year 1957.  Knight grew into a Certified Public Accountant (CPA) before going fully into the business he started.  In 1964, Blue Ribbon Sports, the initial Nike, Inc., was founded by Bill Bowerman and Phil Knight (Carbasho, 2010). This was made possible through a joint investment of $1000 to endow the business venture.  Initially, the company originated with Bowerman and Knight being resident distributors for the Onitsuka Tiger footwear product (now possessed by ASICS). Moreover, Bowerman and Knight conducted their business out of their cars parked at local track meets and sporting events. They sold their merchandise mainly to athletes in the locality of the University of Oregon. In 1966, the main Blue Ribbon Sports selling store opened in Santa Monica, California. As their profits skyrocketed, they cut their ties with Onitsuka Tiger hence created and marketed their own mark of footwear and apparel. Blue Ribbon Sports appointed Carolyn Davidson to design and implement their classic "swoosh" emblem in 1971 for $35. It is documented that the Nike swoosh exemplifies the spirit of the flying goddess who stirred the most daring and gallant warriors at the birth of civilization.  By the year concluded in 1971, BRSs returns were documented to reach a stifling one million dollars.  In 1972, Blue Ribbon Sports instituted their "Nike" (marked NI-KEY). It is worth noting that it was named after the Greek Goddess of Triumph, line of footwear (Espejo, 2010). After expanding to Canada in 1972, BRS officially renamed itself to Nike, Inc. in 1978.  Moreover, Nike headquarters was unlocked at 3900 S.W. Murray Blvd. in Beaverton, Oregon. This went parallel with their expansion into foreign marketplaces such as countries situated in Asia, and the inauguration of multiple manufacturing locations.  In 1979, the renowned Nike AIR expertise is born as well. By 1980, Nike, Inc. had surpassed nearly half of the athletic footwear market. It was noted that Nike made this possible not by traditional advertising means. This is because Nike did not produce a TV advertisement until 1982.  Their success happened through the spread of Nikes reputation in the athletic footwear industry. It was noted that the athletes and customers gave Nike positive reviews. It is important to state that the positive image that Nike had fashioned for themselves has held to this day. This is because Nike remains the major choice for numerous athletes everywhere the world.  Later, Nike instigates its advertising campaign aided by Wieden and Kennedy, an indigenous advertising organization.  Nike then inaugurated its status for crafting unique and exciting ads, commencing with its "Just Do It" watchword in 1988. Campaign strategy – rationale The rationale for Nike’s “Just Do It” campaign strategy were numerous. First, the management of Nike at the time thought it would be a good idea to increase its sales. This is because without proper marketing, their sales had increased significantly. This happened mainly through the use of word of mouth. As a result, through more discussions, the management came with the idea that a real advertising campaign will be more than beneficial to the company. Moreover, the management believed in keeping the client base in large numbers and happy. Therefore, they alleged that this strategy will present the client with rationale behind their products and motivation hence make the client dependent on the product. Moreover, the campaign strategy was assumed that it will provide the necessary tactical guidance. This will aid in the selling of their merchandise. Moreover, it will aid in the strategic communication specialists implementation of the plan. In addition, through Nike’s high class planned campaign, the customers will crave more for the goods. This will, as a result, ground the customers into becoming loyal to the brand. This translates to the company being seen as the loyal satisfiers of the imbibing need of high class shoes. It is worth noting that the high class shoes translated to more revenue for the company. Internationally, Nike’s management believed that it will base a larger customer base through enticing the customers. This is because the advertising campaign strategy will make the international customers change their appeal to favour their goods. As a result, it was essential for the Nike Company to embrace the “Just Do It” campaign (Parente, 2006.). Evaluation of the Campaign - Application of Advertising Concepts and Framework The main aim of Nike’s advertisement campaign, “Just Do It” campaign, was aimed to the customers of their products. These were mainly athletes. It was to reassure the customers (athletes) that the brand they chose, Nike, was a quality and reliable brand (Williams, 2004). As a result, this would increase their sales hence revenue. The campaign managers chose celebrity sport figures. As a result, utilized celebrity advertising into their campaign. Celebrities are most looked up by the general public. Consequently, if they adopted the products, the general public are also expected to embrace it. Nike first used celebrity sport figures such as Bo Jackson and John McEnroe. Later, Michael Jordan joined this group of celebrities. Celebrity endorsements of the goods, especially sport shoes, charm the customers’ logic of belonging. This resulted to the social stature of Nike to become a self-fulfilling image of their worldwide accepted prophecy: “If you want to be cool, wear Nike; if you are cool, you are probably wearing Nike” (Sutherland, 2012). By concentrating on the atmosphere and image carried by the fitness principles, Nike was able to appeal those who sought the image without experiencing the agony. Due to the fact that Nike produces goods for an extensive range of sports, they face competition from every corner of the sport and sports fashion brand. These include famous brands like Adidas, Puma, and Reebok. It is worth noting that Nike’s major huge change was the instance when they cashed in on the jogging or fitness trend of the mid-1980s (Avery, 2000). It was noted that Reebok was dominating the aerobics race hence gaining a huge market portion in the sneaker industry. With Nike no longer gratified to being the superior running shoe preferred by a few thousand marathoners and bodybuilding nuts, it sought to develop its operations to target every American. This was to be regardless of age, gender or physical-fitness of the customers. To make this vision possible, they were to rigorously adapt the advertising campaign strategy. It is crucial to state that the Nike’s advertising campaign utilized the four (4) P’s. They were products, pricing, placement, and promotion (Niefeld, 2009). Under the products campaign, Nike sells a huge assortment of products. These consist of shoes and clothing for sports activities comprising hockey, basketball, tennis, baseball, combat sports, tennis, football (soccer), American football, cheer leading, athletics, golf, aquatic activities, cross training, golf, skateboarding, soccer, bicycling, volleyball, wrestling, auto racing and other athletic and recreational uses. It is worth noting that Nike yields a wide range of sports tools. Their primary products were track running shoes, basketball shoes, tennis, soccer and wrestling. Currently, they also brand jerseys for a wide variety of sports including track and field, lacrosse, football, cricket, tennis, soccer, basketball and baseball. Under the valuing units, studies demonstrate that consumers are enthusiastic to pay more for products that they personally review to be greater in quality, style and dependability. Nike’s products vary in price from agreements with Wal-Mart for low-priced, more affordable sneakers. These are aimed to cover the low income earners of the society. The very expensive sneakers and other products in various locations cover the high income earners who love price to come with quality. As a result, this taps to the extensive range of client base that the Nike brand necessitates. Moreover, Nike primarily bases its pricing on exclusiveness, grace, and customization (Niefeld, 2009). Location is a vital component of any industry. This is for the reason that it helps them to be strategically placed increasing their economic advantage. This could translate to more economies of scale hence a positive output. As a result, Nike is documented to own facilities in Oregon, The Netherlands, Tennessee and North Carolina. Moreover, Nike controls chartered facilities for Niketown pegged with NikeWomen retail stores, translating to over 200 Nike Factory Stores and in excess of 100 sales and administrative headquarters. Additionally, Nike trades its produce to excess of 25,000 retailers in the U.S. These include Nike outlets and "Niketown" supplies, and in about 140 countries in the realm. This upsurges the pool of clienteles hence their revenues. Through the promotion strategy, Nike’s ads were seldom dedicated on the product itself. Conspicuously, they concentrated on the person wearing the produce while incorporating witticisms, explicit and implicit, to put across their point. This was supposed to cause a more undying impact on the customers therefore, would cause a claim of their product. Moreover, Nike does not only sponsor proficient athletes. Nike also promotes events like Hoop It Up (also called high school basketball) and The Golden West Invitational (also called high school path and pitch). Through all this, Nike puts emphases and crucial attention on its products hence promote the shoe to the high schools that will be involved in the events. Additionally, Nike uses web sites as a publicity tool to cover these events. This is because in today’s world, majority of the world is technologically advanced hence the publicity will be viewed by all irrregardless of their location (Jenkins, and Zif, 2001). Players dominant in sports have been endorsed by Nike. Major sports are football, basketball, and tennis. Through their endorsement, they promote the players publicly. In return, the successful players are required to wear their slogan wherever they go. In addition, Nike also approves players in racing, golf, cycling, and skateboarding. However, it was the adoption of a basketball player, Michael Jordan in 1984 that verified the campaign to be one of the prime boosts to Nike’s public relations and sales. Nikes marketing plan is a significant component of the companys accomplishment. Nike is located as a first-class brand, selling ingenious (custom-made) and expensive merchandises. Nike baits customers with a marketing strategy concentrating around a product image which is attained by unique logo and the advertising catchphrase: "Just do it". Nike endorses its products by sponsorship arrangements with celebrity athletes, proficient teams and college athletic groups. The timing of this campaign was perfect. This facilitated its implementation to be flawless. It is worth noting that he timing was important because it was crucial to cause maximum change in the customer base hence increase income for the brand. The advertisements carried through this campaign were hilarious, pleasing to the cynic in all of us, while pleading consumers to take responsibility of their physical fitness. This caused a mind-set change in the customers that favoured the adoption and buying of the shoe. More prominently, by preserving Nikes you were instantaneously a member of an anticipated group. As a result, the campaign was easily recognisable (to the point that Nike ultimately did not even worry to parade the word “Nike” in advertisements, the swoosh was sufficient) hence remained true to its message (Laws and Coleby, 2003). Conclusion or Recommendation With its “Just Do It” campaign and sturdy product, Nike was gifted to increase its portion of the local sport-shoe industry from 18 percent to 43 percent, from $877 million in wide-reaching sales to $9.2 billion. This was notably in the ten years between 1988 and 1998 from the year when the campaign was initiated. As a result, this proves that an advertisement campaign can cause a lot of changes in the revenue of the involved company, in this case Nike Inc. Therefore, for any company to increase their revenues, they ought to develop, implement and facilitate their own advertisement strategy (Espejo, 2010). References Avery, J., 2000. Advertising campaign planning: developing an advertising-based marketing plan. Chicago, Copy Workshop. Carbasho, T., 2010. Nike. (E-book) Santa Barbara, Calif, Greenwood. Available through: http://ebooks.abc-clio.com/?isbn=9781598843439 (Accessed 4th December 2013). Egendorf, L. K., 2006. Advertising. Farmington Hills, MI, Greenhaven Press. Espejo, R., 2010. Advertising. Detroit, Greenhaven Press. Jenkins, J. R. G., and Zif, J. J., 2001. Planning the advertising campaign; players manual. New York, Macmillan. Laws, S., and Coleby, G., 2003. The advertising campaign. Scunthorpe, Desktop Publications. Niefeld, J. S., 2009. The making of an advertising campaign. Englewood Cliffs, N.J., Prentice Hall. Parente, D., 2006. Advertising campaign strategy: a guide to marketing communication plans. Mason, Ohio, Thomson/South-Western. Sutherland, A., 2012. Nike. London, Wayland. Williams, L., 2004. Nike. New York, Schocken Books. APPENDIXES Appendix A The above graph represents a Nike sales chart of the year 2004. It clearly indicates that domestic footwear takes the largest chunk of the sales. This is because the advertisement campaign strategies aim to get more sales locally. It is, therefore, right to say that the aims of the campaign have been fully met. Appendix B “If you have a body, you are an athlete. And as long as there are athletes, there will be Nike.” -Bill Bowerman The above picture represents one of the many pictures that were used by the Nike campaign strategies. It is clear that the picture is hilarious, while clearly showing the Nike shoes. It is, therefore, appropriate to say that such a picture is retained permanently in the brains of the customers hence more likely that the shoes will be bought. Read More